Silver Bull Resources, Inc. (OTCQB: SVBL, TSX: SVB) (“Silver Bull”)
is pleased to announce it has completed its due diligence and has
closed om the option agreement with Copperbelt AG (“Copperbelt”), a
public, non-listed mineral exploration company registered in Zug,
Switzerland, regarding their 100% owned Beskauga copper-gold
project located in northeastern Kazakhstan.
Highlights of the Agreement
- With the closing of the deal Silver
Bull has paid Copperbelt a total of US$70,000 in upfront fees.
- Silver Bull has four years to
conduct exploration on the property. Exploration expenditures on
Beskauga and certain other licenses required to keep the option in
good standing are US$2 million in year one, US$3 million in year
two, US$5 million in year three and US$5 million in year four, for
a total exploration spend of US$15 million over four years.
- After completing US$15 million in
cumulative exploration expenditures Silver Bull can acquire the
Beskauga property for a US$15 million cash payment.
- Copperbelt may receive a bonus
payment of up to US$32 million should Silver Bull publish a
Bankable Feasibility Study (“BFS”) with a resource of up to 10
million gold equivalent ounces on the main Beskauga prospect and 5
million gold equivalent ounces on an additional prospect. 20% of
the bonus is payable 60 days after publishing a BFS, with the
remaining 80% payable on the commencement of mine construction. Up
to 50% of the bonus is payable in common stock of Silver Bull at
Silver Bull’s election.
- Silver Bull will pay a finder’s fee
to a third party upon the satisfaction of certain conditions.
Tim Barry, President, CEO and director of Silver
Bull states, “We are extremely pleased to close this agreement with
Copperbelt. We believe the Beskauga copper-gold project represents
one of the best exploration opportunities in the world. The high
quality work that has been completed on the project to date
indicates that Beskauga is a huge mineralizing system that has
considerable upside that has yet to be explored. We will be working
closely with our partners from Copperbelt to quickly and
efficiently explore these areas. In addition to the exploration
potential at Beskauga, the project has excellent
Paved road access and, 1100 KVA power lines,
heavy rail, and a highly trained workforce all lie within a 10
kilometer radius. The capital city of Nur-Sultan, located
approximately 300 kilometers from the project, has a major
international airport allowing for easy access and administration
of the Beskauga project.
As a mining jurisdiction Kazakhstan is fast
becoming a “go to” place due to its recently updated mining law and
incredible geological prospectivity. In June 2018 the Kazakhstan
government implemented a new mining code based on the mining code
used in Western Australia and has reduced a considerable amount of
the administrative burdens for subsoil users. Unlike many
governments around the world today, the Kazakh government is very
supportive of the mining sector, a view which is highlighted by the
fact that numerous major mining companies have recently set up an
office in the country and acquired exploration licenses. We expect
to provide more details about the Beskauga project itself in the
Size: Kazakhstan is the ninth
largest country in the world, covering 2,717,300 km2, and has a
population of 18.2 million people.
Capital City: The capital city
is Nur-Sultan which is located 300 kilometers from the project.
Nur-Sultan has a major international airport allowing for easy
access and administration of the Beskauga project.
Mining Law: Kazakhstan adopted
a new mining code titled “Code on Surface and Subsoil Use” (the
"SSU Code") on December 27, 2017, that became effective on June 29,
2018. The SSU Code is based on the Western Australian model where
Kazakhstan moved from a contractual regime to a licensing regime
for solid minerals (except for uranium). Coincident with the
updated SSU law, the Kazakhstan government also reduced a
considerable amount of the administrative burdens for subsoil
Tax: A summary of pertinent
taxes related to exploration in Kazakhstan is as follows:
- 20% corporate tax
- 12% value-added tax (VAT) is
refundable for exploration companies
- 4.7% royalty for copper
- 5% royalty for gold and silver
Kazakhstan is one of the most prospective countries in the world
for a number of metals. According the United States Geological
Survey (USGS) Kazakhstan is;
- 1st in the world for uranium
production (41% of world output)
- 2nd in the world for chromite
production (18% of world output)
- 4th in the world for titanium
production (6% of world output)
- 10th in the world for copper
In addition, Kazakhstan has significant proven
reserves (as yet unmined) of gold, silver, lead, zinc tin, iron
ore, nickel, cobalt, and bauxite.
The Fraser Institute Annual Survey of Mining
Companies in 2017, ranked Kazakhstan the 24th best mining
jurisdiction in the world.
Sierra Mojada Update
Silver Bull’s Sierra Mojada project remains
under an illegal blockade organized by a Cooperative of local
Miners called Sociedad Cooperativa de Exploración Minera Mineros
Norteños, S.C.L. (“Mineros Norteños”).
Due to COVID-19 the Mexican court system remains
closed and the timing of reopening is uncertain. In an attempt to
force Silver Bull into making a settlement, Mineros Norteños has
blocked access to the project since September 2019. To ensure the
safety of all involved, Silver Bull has elected to halt all
operations on the project until a resolution can be found.
The joint venture option with South32 remains in
good standing but under a force majeure pause.
About Silver Bull: Silver Bull
is a mineral exploration company whose shares are listed on the
Toronto Stock Exchange and trade on the OTCQB in the United States.
Silver Bull owns the Sierra Mojada project which is located 150
kilometers north of the city of Torreon in Coahuila, Mexico, and is
highly prospective for silver and zinc. Sierra Mojada is currently
under a joint venture option with South32 International Investment
Holdings Pty Ltd.
On behalf of the Board of Directors "Tim Barry"
Tim Barry, CPAusIMM Chief Executive Officer,
President and Director
INVESTOR RELATIONS: +1 604 687 5800
Cautionary note regarding forward
looking statements: This news release contains
forward-looking statements regarding future events and Silver
Bull's future results that are subject to the safe harbors created
under the U.S. Private Securities Litigation Reform Act of 1995,
the Securities Act of 1933, as amended, the Securities Exchange Act
of 1934, as amended, and applicable Canadian securities laws.
Forward-looking statements include, among others, statements
regarding the potential payment of a finder’s fee in connection
with the Beskauga option agreement, the potential upside of the
Beskauga property, future exploration of the Beskauga area, support
of the Kazakh government of the mining sector, geological
prospectivity of Kazakhstan , the potential resolution of the
blockade at Sierra Mojada. These statements are based on current
expectations, estimates, forecasts, and projections about Silver
Bull's exploration projects, the industry in which Silver Bull
operates and the beliefs and assumptions of Silver Bull's
management. Words such as "expects," "anticipates," "targets,"
"goals," "projects," "intends," "plans," "believes," "seeks,"
"estimates," "continues," "may," variations of such words, and
similar expressions and references to future periods, are intended
to identify such forward-looking statements. Forward-looking
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond our control, including such
factors as the results of exploration activities and whether the
results continue to support continued exploration activities,
unexpected variations in ore grade, types and metallurgy,
volatility and level of commodity prices, the availability of
sufficient future financing, and other matters discussed under the
caption "Risk Factors" in our Annual Report on Form 10-K for the
fiscal year ended October 31, 2019, our Quarterly Reports on Form
10-Q for the interim periods ended January 31, 2020, April 30,
2020, and July 31, 2020, and our other periodic and current reports
filed with the SEC and available on www.sec.gov and with the
Canadian securities commissions available on www.sedar.com. Readers
are cautioned that forward-looking statements are not guarantees of
future performance and that actual results or developments may
differ materially from those expressed or implied in the
forward-looking statements. Any forward-looking statement made by
us in this release is based only on information currently available
to us and speaks only as of the date on which it is made. We
undertake no obligation to publicly update any forward-looking
statement, whether written or oral, that may be made from time to
time, whether as a result of new information, future developments
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